Interview with Egypt’s minister of petroleum & mineral resources, Tarek El-Molla - BP MAGAZINE

24 March 2017

Egypt has faced challenges to its energy supply in recent years, but is looking ahead to new opportunities to revive domestic production. The country’s minister of petroleum and mineral resources Tarek El-Molla talks to BP Magazine about a new era of investment, how Egypt is well-placed to become a regional energy hub on the eastern Mediterranean, and the significant role that BP is playing in the country’s energy future


What have been Egypt’s energy challenges over the last five years?

Our challenges over recent years really began with the revolution of 2011 and consecutive events that led to political instability, security issues and a general slowdown in the Egyptian economy; which was echoed in the oil and gas industry. 

TechnipFMC on for Leviathan - UPSTREAM

24 Mar 2017 10:15 GMT
Iain Esau

Contractor heavily tipped to take major pipeline installation contract

Paris and New York-listed TechnipFMC is the front-runner to secure a major pipeline installation contract for Noble Energy’s initial $3.75-billion Leviathan project off Israel.

Industry sources said the super-contractor has beaten off rival bids from Subsea 7 and Allseas, among others, to secure pole position in the eyes of the US independent.

“We think they have got Leviathan,” said a project watcher.

Another market player added: “It’s TechnipFMC for Leviathan.”

TechnipFMC’s pipelay contract is expected to cover a pair of 117-kilometre pipelines taking gas and condensate, separately, to a big fixed platform installed on Israel’s continental shelf, about 10 kilometres off the coast.

Press release by the Ministry of Foreign Affairs on the statement of the Spokesperson of the Ministry of Foreign Affairs of Turkey - REPUBLIC OF CYPRUS

UN Secreatry General Guterres (left) with President Anastasiades

24/03/2017 17:40

With regard to the press release issued by the Ministry of Foreign Affairs of Turkey, on Friday, 24 March 2017, concerning the hydrocarbon-related activities of the Republic of Cyprus in its Exclusive Economic Zone and continental shelf, the Ministry of Foreign Affairs of the Republic of Cyprus emphasizes the following:

The statement once more demonstrates Turkey’s disregard for conventional and customary International Law, as reflected in United Nations Convention on the Law of the Sea 1982, and contempt for the sovereign rights of the Republic of Cyprus over its continental shelf and Exclusive Economic Zone.

International Law provides that a country’s natural wealth belongs to the state and the responsibility for managing it lies with its Government for the benefit of all its citizens. Consequently, actions that put into question the sovereign rights of the Republic of Cyprus not only contradict International Law, but are also completely groundless.

Lebanon: Israel's maritime zone law means war - GLOBES

23 Mar, 2017 11:24
Nati Yefet

Lebanese parliament spokesman Nabih Berri said that Israel's proposed law on the energy-rich disputed waters could trigger a war.
The speaker of the Lebanese parliament Nabih Berri claims that the maritime zone law that Israel is formulating, and includes declaring some 860 square kilometers of disputed waters as Israeli territory, could trigger a war between the countries, reports the Lebanese newspaper "Al Joumhouria."

Berri said, "This is a new assault by Israel on Lebanese sovereignty. What has been revealed by Israeli media was not arbitrary, but rather reveals a path taken by Israel in a bid to control Lebanon's gas and oil wealth within Lebanese economic borders.”

“Anyway, if the Israeli disposition is correct, which I tend to believe, it is tantamount to a war sparked by Israel. It is another maritime Shebaa Farms Conflict which opens the situation to many dangerous possibilities."

Libyan oil output rises to 700,000 barrels per day after port fighting ends: NOC - REUTERS

A dog walks near Ras Lanuf Oil and Gas Company in Ras Lanuf,
Libya, March 16, 2017 - REUTERS/Esam Omran Al-Fetori

Tunis, Thu Mar 23, 2017 | 4:53am EDT
Aidan Lewis

Libya's oil production has reached 700,000 barrels per day (bpd), the National Oil Corporation (NOC) said on Wednesday, recovering from a drop earlier this month caused by fighting at two key oil ports.

"We are working very hard to reach 800,000 barrels by the end of April 2017, and, God willing, we will reach 1.1 million barrels next August," NOC Chairman Mustafa Sanalla was quoted as saying in a statement.

The NOC said in a separate statement it hoped to produce 55,000 bpd in the coming weeks from the Abu Attifel and Rimal fields, which are currently closed for maintenance.

Libya's oil output rebounds, nearly matching levels prior to clashes - WORLD OIL

By SALMA EL WARDANY on 3/22/2017

CAIRO (Bloomberg) -- Libya’s oil production has climbed to almost match the level before clashes disrupted output three weeks ago and forced the OPEC nation’s two biggest oil ports to halt shipments.

Output has climbed to 699,000 bpd, Jadalla Alaokali, board member at state-run National Oil Corp., said by phone. The nation’s biggest port, Es Sider, will load a tanker with crude on March 26, resuming shipments for the first time since earlier this month, he said.

The tanker, still to be nominated, is set to load one million barrels at Es Sider, according to a person familiar with the situation, who asked not to be identified because the matter isn’t public.

Cyprus to move forward with more oil drilling licensing -minister (XOM, ENI, FP) - MARKETS INSIDER / REUTERS

Mar. 22, 2017, 05:26 PM

Reporting: Dion Rabouin & Michele Kambas; Editing by Andrew Hay

NEW YORK, March 22 (Reuters) - Cyprus will move ahead with further licensing for oil drilling after analyzing the results of its most recent exploration, the country's energy minister Yiorgos Lakkotrypis said on Wednesday.

Cyprus announced the completion of a third round of licensing for well drilling in which Exxon Mobil, Italy’s ENI and France’s Total won additional blocks offshore. The contracts will be signed on April 5 and 6, but it has not yet been determined which blocks off Cyprus' coast the companies will drill, Lakkotrypis said.

The minister said that while the country's current priority is "exploration, exploration, exploration," he expected much more for Cyprus on the energy front.

"Once we have the results of this exploration 2.0 as I called it, then of course there will be a fourth (round) and a fifth and a sixth and I’m sure there will be plenty more," Lakkotrypis told Reuters on the sidelines of Capital Link's Invest in Cyprus Forum in New York City.

Dolphinus in talks to import gas from Israel’s Tamar field - ENTERPRISE / AL MAL

Tuesday, 21 March 2017

Representatives from major shareholders in the Tamar gas field in Israel were reportedly here over the weekend to discuss exporting gas to Egypt through Dolphinus Holdings, according to unsubstantiated reports from Masrawy picked up by Al Mal. Tamar field shareholders, including Delek, Noble, and Isramco, had reportedly agreed to supply 60 bcf from the Israeli field through a pipeline and had been here to iron out the details. 

Gazprom and Italy’s Eni signed a memorandum of understanding in Moscow - TASS

© Stanislav Krasilnikov/TASS

March 21, 14:58UTC+3

MOSCOW, March 21. /TASS/. Gazprom and Italy’s Eni signed a memorandum of understanding in Moscow, the Russian gas holding said on Tuesday.

"The paper reflects interest of the parties in analyzing prospects of cooperation in the sphere of developing the southern corridor of gas supplies from Russia to European nations, particularly to Italy, and upgrading contracts on Russian gas supply to the republic," Gazprom said.

"Upgrade of contracts will only pertain to a change in delivery destinations in context of the southern supply corridor," Gazprom’s international trading arm Gazprom Export said.

Conflict with Lebanon on gas looking likely - GLOBES

21 Mar, 2017 12:07
Amiram Barkat

The recent escalation in tensions over offshore gas tenders was probably a deliberate step by Hezbollah.

A military conflict between Israel and one of its neighbors over control of marine areas is becoming increasing likely as the dispute between Israel and Lebanon over the maritime border heats up. The recent escalation was probably a deliberate step by Hezbollah, which wants to make the maritime border dispute into a Shebaa Farms - the Lebanese name for the territory on Har Dov that Hezbollah says belongs to Lebanon. Will this be the first natural gas war in this stricken corner of the Middle East?

The maritime border is formally different from a land border, because it does not border Israeli territory; it borders an area in which Israel claims exclusive economic rights. Actually Israeli naval ships are patrolling along the maritime border, to be joined by the surface warships ordered from the German shipyards in the affair now being investigated, which involves the prime minister's lawyer.

Israel's Ratio secures $400 mln to fund Leviathan natgas project - REUTERS

JERUSALEM (Reuters), Tue Mar 21, 2017 | 8:02am EDTAri Rabinovitch

Ratio Oil said on Tuesday it has secured up to $400 million to finance its share in the development of the large Leviathan natural gas field offshore Israel.

Ratio holds a 15 percent stake in Leviathan, together with Israel's Delek Group, which has a 45.34 percent share and operator Noble Energy, which holds a 39.66 percent stake.

The partners have approved a first-phase budget of $3.75 billion dollars.

Ratio said it signed financing agreements with a consortium of local and foreign groups, including HSBC and BNP Paribas. 

Gazprom and Eni sign Memorandum of Understanding - GAZPROM

Claudio Descalzi and Alexey Miller

March 21, 2017, 14:30

Alexey Miller, Chairman of the Gazprom Management Committee, and Claudio Descalzi, Chief Executive Officer of Eni, signed a Memorandum of Understanding at the Gazprom headquarters today.

The document reflects the parties’ interest in analyzing the prospects for cooperation in developing the southern corridor for Russian gas supplies to European countries, including Italy, as well as updating the contracts for Russian gas deliveries to Italy.

Background

Eni S.p.A. is a global energy company operating in the oil, gas, petrochemical and engineering industries, producing and selling electricity, and providing oil field services. Eni is Gazprom's major partner within the Blue Stream project.

Rosneft signs LNG deal with Egypt for 10 cargoes this year- MENAFN / GULF TIMES

21/03/2017

Russia's largest crude producer, Rosneft joined traders from Trafigura Group to Glencore in boosting liquefied natural gas deliveries to Egypt before the country restores domestic production.

Rosneft, which seeks to expand its international gas business, signed a contract to supply the north African nation with 10 LNG cargoes this year, Rosneft said yesterday by email. The deal, which followed a debut contract of three cargoes last year, will further strengthen the strategic partnership between Rosneft and Egypt, the company said.

Gas Talks With Turkey May Wrap Up in Summer, Says Israel Energy Minister - BLOOMBERG

21 March 2017, 11:18 a.m. EET
David Wainer and Yaacov Benmeleh

• Aim is to create framework to let companies negotiate
• Negotiations with Italy on second pipeline proceeding

Talks between government officials on building a natural gas pipeline from Israel to Turkey may conclude as early as this summer, Israeli Energy Minister Yuval Steinitz said on Tuesday.

The aim is to create a framework that would let companies on both sides advance their own negotiations, with gas flowing to Turkey in about three years, Steinitz said in an interview with Yousef Gamal El-Din and Shery Ahn on Bloomberg Television. Israel is also in talks for a more ambitious pipeline that would pass through Cyprus and Greece to Italy, whose energy minister plans to visit Israel in early April to discuss the project, he said.
Keep up with the best of Bloomberg Politics.

Gov’t timeline to cut down on subsidies ends in 2019 - ENTERPRISE / AL SHOROUK

Tuesday, 21 March 2017

Gov’t timeline to cut down on subsidies ends in 2019: The government does not plan to fully eliminate fuel subsidies, said Oil Minister Tarek El Molla in an extensive interview with Al Shorouk. The timeline to reduce spending on fuel subsidies will end in 2019, but the government will keep paying for fuel subsidies after that, he added. It is worth noting that Egypt had only committed to “reducing fuel subsidies” in its agreement with the IMF for the USD 12 bn loan, but had agreed to a complete phase-out of subsidies for electricity in the coming five years. Other takeaways from the interview:

SDX Starts Drilling Operations at SD-1X Well - RIGZONE

Monday, March 20, 2017
Rigzone Staff

SDX Energy Inc. has commenced drilling operations on the SD-1X well at its South Disouq concession in Nile Delta area of Egypt.

The well is targeting gas in the upper Abu Madi section and oil in the lower AEB & Abu Roash sections. Drilling operations are anticipated to take between 30 and 45 days, depending on what is encountered in the targeted intervals.

SDX also revealed that upon commencement of operations it has been granted a six-month extension to the first exploration period, until September 19. This will allow sufficient time for the SD-1X well results to be fully evaluated prior to making any decision to enter into the second exploration period at South Disouq, SDX said in a company statement.

Azerbaijan’s Lost Transparency - CARNEGIE EUROPE

March 20, 2017

Thomas de Waal

Azerbaijan’s suspension from a coalition of energy-extracting countries will harm Baku’s international brand and image as a reliable place to invest.

Can a petrostate with a rent-seeking elite ever reform itself—or at least clean up its business practices?

That the answer could be “yes” was the idea that drove the founders of the Extractive Industries Transparency Initiative (EITI) in 2003. The initiative is a voluntary coalition of countries with energy- and mineral-extraction industries that pledge to make their transactions and sources of wealth transparent. The project took off and won support from international financing organizations, and at the start of 2017, the EITI had 51 implementing member countries.

As of March 9, it has one less. Azerbaijan, the Caspian petrostate on the eastern edge of Europe, announced it was quitting EITI after being suspended from the organization. The announcement came just as the groundwork was being completed for an expanded network of three pipelines scheduled to take Azerbaijani gas to European markets by 2020.

Oil Ministry, Sidi Kreir to establish USD 1 bn polypropylene factory - ENTERPRISE / AL BORSA / SIDPEC

Monday, 20 March 2017

The Oil Ministry and the Chemical Industries Holding Company are planning to cooperate with Sidi Kreir Petrochemicals to establish a polypropylene factory in Alexandria with investments of up to USD 1 bn, Al Borsa reports. The factory is targeting an annual production capacity of 450 tonnes to cover around 50% of the market’s needs of polypropylene, chairman of Sidi Kreir Petrochemicals (SIDPEC) Osama Mahdy said.

Turkish vessel to begin deep-sea drilling in Black Sea - DAILY SABAH

19.3.2017

The seismic detection vessel "Barbaros Hayrettin Paşa," belonging to the Turkish Petroleum Corporation, has started to conduct deep-sea drilling and seismic exploration of oil and natural gas resources in Samsun, Ordu and Giresun in the Black Sea.

The Turkish Petroleum Corporation, which is a subsidiary of the Ministry of Energy and Natural Resources, has begun natural gas and oil exploration in the Black Sea. The ship Barbaros Hayrettin Paşa which anchored in the Samsun Port harbor on Saturday and received logistic support, started to conduct research on Samsun, Ordu and Giresun offshore. Moreover, onboard the vessel, which will conduct research for three months in the region, are 44 crew members, including mostly researchers.

New natural gas regulator to fall under cabinet’s jurisdiction, not Oil Ministry - ENTERPRISE / AL BORSA

Sunday, 19 March 2017

The House of Representatives’ Energy Committee amended clauses of the Natural Gas Act placing the new market regulator under the jurisdiction of the cabinet and not the oil ministry, committee member El Sayed Hegazy tells Al Borsa. 

He expects the committee to vote on the much-anticipated law — which deregulates the gas market and limiting the government’s role to that of regulator — next week before sending it over to the House general assembly for a vote.

The real prospects of East Med Gas - IN CYPRUS / CYPRUS WEEKLY

March 19, 2017
Charles Ellinas

This was the subject of a very successful conference – EMGC 2017 – held in Nicosia over March 14-15 and attended by leading experts and delegates from 25 countries.

The conference was organised by Gulf-Publishing Company Houston. Its focus was the East Med gas industry and its development, concentrating on markets, project development, gas monetisation, investment and gas trading, avoiding local politics. In other words the conference covered all the key issues that affect the future development of East Med gas resources. I examine and analyse these in this article.

Aramco shipments officially resume - ENTERPRISE

Sunday, 19 March 2017

Saudi Aramco has resume shipments of petroleum products to Egypt, which received shipments on both Friday and Saturday, Oil Minister Tarek El Molla told CBC’s Lamees El Hadidi last night. The next two shipments are scheduled to arrive on 25 and 26 March and will then return to a regular schedule from next month. Egypt is set to buy c. USD 320-340 mn each month at today’s prices. El Molla had told Reuters’ Arabic service on Thursday that the shipments were expected to resume by the end of March or in early April. The resumption of shipments — part of a USD 23 bn, five-year supply agreement halted last year amid rising tensions between Cairo and Riyadh — was announced last Wednesday.

Siemens to add 1,200MW to national electricity grid at End-May - AMWAL AL GHAD / DAILY NEWS EGYPT

Saturday, 18 March 2017 12:04

Siemens is set to add 1,200MW to the national electricity grid by the end of May from power plants in the New Administrative Capital and Borollos.

Sources at the Egyptian Electricity Holding Company (EEHC) said that, according to an agreement with Siemens and Orascom, the New Administrative Capital power plant will add 400MW by the end of March, in addition to 800MW to be added from the Borollos power plant in the end of May.

The sheer capacity spanning Siemens’ three projects in Beni Suef, the New Administrative Capital, and Borollos that will be added before summer amounts to 6,000MW; where 4,800MW have already been linked to the grid pending commercial operation.

How is the Egyptian General Petroleum Authority coping with fuel shortages after Saudi Arabia rescinded on a deal to provide Egypt with petrol and diesel shipments - ZAWYA / AL AHRAM WEEKLY

18 March 2017

Ahmed Ismail

Egypt’s Ministry of Petroleum and Mineral Resources is seeking a deal with the Iraqi government to import around one million barrels of crude oil to meet some of the Egyptian market’s petroleum needs after the Saudi company Aramco stopped deliveries of petrol and diesel fuel to Egypt in October.

According to Tarek Al-Hadidi, CEO of the Egyptian General Petroleum Authority (EGPA), the first shipment of Iraqi crude oil is scheduled in March “to be processed at Egyptian refineries and produce petroleum outputs for the domestic market.”

Contracts with energy companies to be signed next month - FAMAGUSTA GAZETTE

Friday, 17 March, 2017

Cyprus is set to sign on April 5 and 6 contracts with the selected bidders of the third licensing round for explorations in blocks 6, 8 and 10 of its Exclusive Economic Zone, Energy Minister Yiorgos Lakkotrypis announced on Friday.

The three contracts were approved today by the Cabinet.

The body authorised the Minister to sign the contracts with the three companies. “The signing will take place on the 5th and the 6th of April and the details will follow very soon,” Lakkotrypis announced to the press after the meeting of the Cabinet.

Asked whether the contacts differ from those signed with companies in previous licensing rounds, the Minister noted that the contracts were negotiated on March 7, as announced. “Today we had the opportunity to present both the technical and the financial results, as well as the legal (results) of the negotiations, in detail to the Cabinet” he said.

Cyprus approves Eni, Total, Exxon offshore block deals - REUTERS

Fri Mar 17, 2017 | 9:54am EDT
Michele Kambas; Editing by Edmund Blair

Cyprus's cabinet on Friday approved contracts with France's Total, Italy's Eni , Exxon Mobil and Qatar Petroleum to explore for oil and gas in offshore areas south of the island, officials said.

Exploring the Mediterranean's Levant Basin has become more attractive since Eni discovered Egypt's offshore Zohr field in 2015, the biggest gas field in the Mediterranean and estimated to contain 850 billion cubic metres of gas. The Cypriot concessions cover exploration rights for three offshore blocks off the south and southwestern coast and contracts would be signed on April 5 and 6, Energy Minister Georgios Lakkotrypis said.

Eni and Total are in a consortium for one of the blocks and ExxonMobil and Qatar have joined up for another. Eni will be on its own in a third block. The blocks were offered in the third licensing round held by Cyprus.

Athens sees Turk effort to dispute Greek sovereignty in sea area around - KATHIMERINI

Kastelorizo Island, Greece

16.03.2017 : 22:10

Vassilis Nedos

In what is seen in Athens as an effort by Ankara to push through its message that Greece has limited sovereignty in the area of the Eastern Mediterranean surrounding the island of Kastelorizo, Turkish forces have in recent days maintained a steady presence in the region, either through military exercises or with the dispatch of research vessels.

According to a navigational telex (navtex) issued by Turkey, the Piri Reis oceanographic vessel will remain in the area south of Kastelorizo until Monday.

Furthermore, according to another two navigational telexes, Turkey is planning to conduct exercises with live ammunition in areas west and east of Kastelorizo (within Turkish territorial waters).

BP to bring Fayoum, Giza concessions on stream ahead of schedule - ENTERPRISE / YOUM7 / OFFSHORE TECHNOLOGY

Thursday, 16 March 2017

BP is reportedly bringing the Fayoum and Giza natural gas fields (see North Alexandria Concession) into production ahead of schedule in November, Oil Ministry sources tell Youm7.

The fields were initially slated to come on stream in 1Q19. BP is expected to produce 400 mcf/d from the concessions.

West Nile Delta (WND) Project involves the development of gas and condensate fields located within the North Alexandria (N Alex) and West Mediterranean Deepwater concessions in the Mediterranean sea, approximately 65km to 85km off the coast of Alexandria, Egypt.

Royal Dutch Shell to increase gas production to 1 bcf/d in the next few years - ENTERPRISE / AHRAM GATE

Thursday, 16 March 2017

Royal Dutch Shell is looking to raise natural gas production from its Mediterranean offshore concessions to 1 bcf/d from a current 500 mcf/d in the next few years, Ahram Gate reports, following up on a meeting yesterday between Shell Egypt Chairman and MD Gasser Hanter and Oil Minister Tarek El Molla.

The company reportedly pledged to increase oil production from its Western Desert concessions to 200K bbl/d from a current 130K bbl/d at the same meeting.

Zohr to Start Gas Production This Year - RIGZONE

Wednesday, March 15, 2017
Andreas Exarheas

Zohr will start gas production in December, according to an investor presentation held in Milan today by Eni.

The Zohr discovery, which was made in August 2015, is believed to hold 5.5 billion barrels of oil equivalent, according to Eni’s website. A December production commencement date would mark a 2.3 year timespan from discovery to output start-up.

Montenegro Signs 30-Year Oil Licensing Deal With Greek Producer - REUTERS

Wednesday, March 15, 2017
Reporting by Maja Zuvela; editing by Susan Thomas

SARAJEVO, March 15 (Reuters) - Montenegro awarded Greece's sole oil producer Energean Oil & Gas a 30-year oil and gas exploration licences in two offshore blocks in the Adriatic sea on Wednesday.

The contract for the blocks covering 338 square km was awarded in line with the terms of a 2014 tender.

The Balkan country produces no oil but initial data indicates it could have enough resources to cover its oil and gas needs.

Vladan Dubljevic, the head of Montenegro's Hydrocarbons Directorate, told Reuters borehole drilling would begin as soon as the Greek company completed the project design, environmental impact assessment and seismic screening.

Energean signs terms for offshore Montenegro blocks - OFFSHORE MAGAZINE

Offshore Montenegro blocks 4219-26 and 4218-30
(Source: Energean Oil & Gas)

03/15/2017

Offshore staff

ATHENS, Greece – Energean Oil & Gas has signed an exploration and production concession contract with the State of Montenegro covering offshore blocks 4219-26 and 4218-30, following parliamentary approval.

Total investment over the initial seven-year exploration period will be $19 million, including funding for a new 3D seismic survey, geophysical and geological studies, and drilling of one well.

The two blocks are in a water depth of 50-100 m (164-328 ft) and close to the Montenegrin coast near the town of Bar. Energean plans to start 3D seismic acquisition during 1Q 2018.

Saudi Aramco to resume oil product shipments to Egypt soon - REUTERS

Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show
and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017.
REUTERS, Hamad I Mohammed

Wed Mar 15, 2017, 2:16pm EDTEhab Farouk, Eric Knecht, CAIRO

Saudi Arabian state oil company Aramco will resume oil product shipments to Egypt some six months after halting them suddenly, the Egyptian Petroleum Ministry said on Wednesday, signaling a potential thaw in relations after months of tension.

The ministry said in a statement that it was working with Aramco on a timetable for the resumption of shipments and that the reasons behind the October cut-off were purely commercial.

EMGC '17: Prospects for accelerating gas trade and regional energy cooperation - HYDROCARBON PROCESSING

March/15/2017
Adrienne Blume

NICOSIA—Gulf Publishing Company's Eastern Mediterranean Gas Conference (EMGC) 2017, the world's primary event for discussing the forces shaping gas industry development in the Eastern Med, continued on March 15.

Dr. Ir. A. J. (Guus) Berkhout, founder and director of the Centre for Global Socio-Economic Change.

Forecasting prosperity to predict energy demand. Founder and Director of the Centre for Global Socio-Economic Change, Dr. Ir. A. J. (Guus) Berkhout started the day with a keynote address on energy's role in economic development in Eastern Med countries.

Egypt replaces heads of state oil and gas companies - REUTERS

Wed Mar 15, 2017 8:45am GMTWriting by Amina Ismail; Editing by Ruth Pitchford
CAIRO (Reuters) - Egyptian Oil Minister Tarek al-Molla has replaced the heads of state oil company EGPC and state gas company EGAS, the Ministry of Petroleum said in a statement on Tuesday.

Abed Ezz el-Regal will replace Tarek al-Hadidi, appointed in April 2016, as head of EGPC while Osama Al Bakly will take over from Mohamed al-Masry as head of EGAS.

The Future of Egypt’s Refining & Petrochemical Industry - WORLD REFINING ASSOCIATION

Download here: The Future of Egypt's Down Stream Industry Report

Egypt is currently the largest oil producer in Africa outside of OPEC and the second largest natural gas producer after Algeria. Egypt, having already taken on a major role in international energy markets is now seeking to get its downstream industry back on track.

Egypt has great potential when it comes to refining and petrochemicals. It is an important transit route, offering great potential to become a hub for petroleum products. Nonetheless, since the Arab spring uprising of 2011 that saw the overthrowing of President Hosni Mubarak, great tolls have been taken on the domestic oil, gas and petrochemical industries.

MEDREG calls for integrated, competitive Mediterranean gas market - NEW EUROPE

MARCH 14, 2017, 23:38 
By New Europe Online/KG

One of the priorities of the Maltese EU Presidency will be to draw attention on the region
The implementation of a stable regulatory framework is a prerequisite to attract investors and ensure energy security of supply, Turkish energy regulator (EMRA) Vice President and MEDREG representative Mehmet Erturktold a seminar in the European Parliament in Brussels on March 8.

He mentioned MEDREG report mapping out current and projected gas and electricity infrastructures in the Mediterranean basin, identifying the main barriers for investments and drawing a set of recommendations to overcome them. A survey submitted to Mediterranean regulators has revealed that the lack of clear institutional framework and regulatory obstacles constitute some of the biggest barriers to investments, Erturk said.

EMGC '17: Eni chief shares invigorating projections for Eastern Med gas - WORLD OIL / HYDROCARBON PROCESSING

Luca Bertelli, CEO of Italy's Eni SpA (photo by Adrienne Blume)

March/14/2017
Adrienne Blume

NICOSIA -- Gulf Publishing Company's Eastern Mediterranean Gas Conference (EMGC) 2017, the fourth incarnation of the world's primary event for discussing the forces shaping gas industry development in the Eastern Mediterranean, opened on March 14.

Luca Bertelli, Chief Exploration Officer of Italy's Eni SpA, opened EMGC 2017 with a keynote address on key gas exploration and development activities in the region, particularly Eni's massive Zohr field in Egypt.

A decade of discovery. "We call the Eastern Mediterranean the 'sea of gas'," Mr. Bertelli said. Eni has been discovering gas in the region for 50 years, starting in the Nile Delta and Egypt's shallow waters. The Italian company partnered with Britain’s BP for exploration activities in the early 1980s.

EMGC '17: Eastern Med gas monetization demands regional cooperation - WORLD OIL / HYDROCARBON PROCESSING

Leda and the Swan mosaic, Sanctuary of Aphrodite, Kouklia, Cyprus

March/14/2017
Adrienne Blume

NICOSIA -- Sessions devoted to gas monetization options and foreign investment initiatives dominated the afternoon of the first day of Gulf Publishing Company's fourth Eastern Mediterranean Gas Conference (EMGC) 2017, March 14.

Strategies for gas monetization. During the conference's second session, executives from companies at work in the region shared offshore development strategies, updates on pipeline proposals and regional power requirements.

Tim Crome, technology manager for TechnipFMC's Global Front End Group, expounded on the advantages of an integrated approach to offshore developments. To drive value for clients, TechnipFMC is working to accelerate and integrate technology innovations, to unlock possibilities to transform project economics, and to develop better integrated offerings across all operations. The company's integrated approach also allows for mitigation and reallocation of commercial risks.

Decision regarding the Drilling of the Leviathan-7 Development and Production Well - DELEK GROUP

Tel Aviv, March 14, 2017.

Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that below is an Immediate Report published by each of Avner Oil Exploration Limited Partnership and Delek Drilling Limited Partnership (jointly “the Partnerships”) concerning the decision to drill the Leviathan-7 development and production well.

Further to the provisions of Section 7.5.9(a)(5) of the Partnerships’ periodic reports as of December 31, 2015, as released on March 28, 2016 (the “Periodic Reports”) regarding the updated development plan for the Leviathan reservoir which is located in the area of the I/14 Leviathan South and I/15 Leviathan North leases (the “Development Plan” and the “Leviathan Project” or the “Leviathan Reservoir”, respectively), of the immediate reports of June 2, 2016 regarding approval of the Development Plan by the Petroleum Commissioner at the Ministry of National Infrastructures, Energy and Water Resources (the “Commissioner”), of the immediate reports of December 18, 2016 regarding the decision of the Leviathan partners to drill the “Leviathan-5” appraisal and production well (the “Leviathan-5 Well”), and the immediate reports of February 23, 2017 regarding the adoption of a final investment decision (FID) for the development of the Leviathan Reservoir, the Partnerships respectfully announce that on March 13, 2017, the Leviathan partners made a decision regarding the drilling of the “Leviathan-7” development and production well in the area of the I/14 Leviathan South lease (the “Leviathan-7 Well” or the “Well”).

Set forth below are further details regarding the Well:

Israel to invest NIS 100m for small gas fields - GLOBES

14 Mar, 2017 14:18
Nati Yefet

The government will invest NIS 100 million (circa USD 27m) in infrastructure for connecting the gas pipeline of the small and medium-sized reservoirs to the national gas transport system.
Two months after the announcement by Greek company Energean of its plans for development of the Karish and Tanin natural gas reservoirs, Minister of National Infrastructure, Energy, and Water Resources Dr. Yuval Steinitz is unveiling his plan to encourage the development of small and medium-sized gas reservoirs. The plan will be brought to the cabinet for approval towards the end of the month. The Ministry of National Infrastructure, Energy, and Water Resources, Ministry of Justice, Antitrust Authority, Israel Tax Authority, and Ministry of Internal Affairs Planning Administration prepared the plans.

Energy giant ENI believes there could be another Zohr field in the region - CYPRUS MAIL

March 14, 2017

A second super-giant gas field like Zohr could be awaiting discovery in the eastern Mediterranean, perhaps off the coast of Cyprus, Italian energy giant ENI said on Tuesday.

“We believe there could be another Zohr in the region. We hope so,” said Luca Bertelli, ENI’s Chief Exploration Officer, speaking at the fourth Eastern Mediterranean Gas Conference in Nicosia.

ENI discovered the Zohr prospect, in Egypt’s exclusive economic zone (EEZ) in 2015. The field holds an estimated 30 trillion cubic feet of gas in place, and is the largest ever natural gas find in the Mediterranean surpassing Israel’s Leviathan.

ENI had taken a gamble, using a geological sequencing model tracking carbonate reservoirs rather than the classical sand-reservoir model.

EU-Gazprom deal clears Bulgaria of South Stream cancellation claims - EURACTIV.com

The (now terminated) South Stream pipeline

13 March 2017

Georgi Gotev

The Commission published Gazprom’s commitments on Monday (13 March) to end a five-year antitrust case and avoid fines heavy fines. As part of the package, Gazprom agreed not to seek any damages from its Bulgarian partners following the termination of South Stream.

In what appears to be a huge deal reached behind closed doors, the Commission agreed with the Russian gas export monopoly to remove restrictions for EU countries from Southern and Eastern Europe to re-sell Russian gas across borders. Until now, bilateral contracts didn’t allow such trade, and in the case of Bulgaria, the implementation of the gas interconnector with Greece was hampered by certain provisions of the Gazprom contracts with both countries.

Monopoly fears in liquefied petroleum gas market - CYPRUS MAIL

March 13, 2017

The Commission for the Protection of Competition (CPC) has initiated a probe into the proposed formation of a new corporation, which it says raises concerns over the creation of a monopoly in the liquefied petroleum gas (LPG) market.

On December 2, 2016, the CPC received a notification of a proposed joint venture by the companies Hellenic Petroleum Cyprus Ltd, Petrolina Holdings (Public) Ltd, Synergas Cooperative Society and Intergaz Ltd.

The joint venture, Vlpg Plant Ltd, will engage in the construction and operation of the installation, storage and management of LPG on an industrial site within the Vassilikos industrial zone that will be rented from the state.

Gas execs in Cyprus to discuss prospects - IN CYPRUS / CYPRUS WEEKLY

March 13, 2017

Energy minister George Lakkotrypis will kick off the Fourth Eastern Mediterranean Gas Conference (EMGC) on Tuesday during which a range of gas industry executive speakers will explore the region’s potential natural gas resources and the path to production.

The conference, run by Gulf Publishing Company, will be held in Nicosia on March 14-15. The conference is sponsored by Deloitte and Cyprus Hydrocarbons Company and is supported by Tiger Offshore, Petroleum Economist, World Oil, and Gas Processing.

Investment and activity in the region has shown a resurgence following Eni’s discovery of Zohr in 2015. Cyprus recently announced the results of its third Licensing Round with blocks approved to be awarded to energy majors Eni, Eni/Total, and ExxonMobil/Qatar Petroleum. Israel has announced that it plans to launch its first auction round for energy development rights to five offshore blocks for natural gas development.

EC reports Gazprom commitments on supplying gas to eastern Europe - OIL & GAS JOURNAL

WASHINGTON D.C., 03/13/2017

Nick Snow, OGJ Washington Editor

Russian natural gas giant Gazprom has made significant commitments to supply gas to customers in eastern and central Europe at competitive prices, the European Commission reported in Brussels.

The commitments “address our competition concerns and provide a forward-looking solution in line with [European Union] rules. In fact, they help to better integrate gas markets in the region,” EC Competition Policy Commissioner Margrethe Vestager said.

In April 2015, the commission sent a Statement of Objections expressing its preliminary view that Gazprom had been breaking EU antitrust rules by pursuing an overall strategy to partition central and eastern European gas markets.

Vestager said the commission now feels that the commitments Gazprom offered cover the EC’s competition concerns by ensuring that:

Constantinos Papalucas on East Med gas developments - ANTENNA TV (CYPRUS)

Constantinos Papalucas is a former Associate with the Environment and Natural Resources Program (ENRP) at Harvard University’s Belfer Center for Science and International Affairs where he focused on the issues surrounding the gas finds and the emerging energy hubs in the Eastern Mediterranean. In this 16 minute interview on ANTENNA's (ANT1, Cyprus) daily show with Nikitas Kyriakou (08/03/2017) Constantinos Papalucas offers a Cypriot perspective on Cyprus & Israel gas developments & the Int. Oil Companies involved, right after the successful completion of the negotiations following Cyprus' 3rd licensing round. The interview is in Greek with English Subtitles.

EGAS natural gas imports down since start of 2017 thanks to higher output, lower consumption - ENTERPRISE / AL BORSA

Monday, 13 March 2017

EGAS has cut its imports of natural gas imports to five monthly shipments (equivalent to 700 mcf/d) from eight (800 mcf/d) since the beginning of 2017 thanks to rising domestic production and lower consumption, Al Borsa reports. 

Imports will rise again to 1.4 bcf/d in May when summertime demand kicks in, according to a top EGAS official. Domestic production is expected to increase to 5 bcf/d from a current 4.5 bcf/d by the second half of the year, before the Zohr field comes online.

Anastasiades to address Cyprus investment forum in New York - CYPRUS MAIL

March 13, 2017

President Nicos Anastasiades is due to attend, and deliver the key address at the Invest in Cyprus Forum in New York on March 22, it was announced on Monday.

The event, organised by Capital Link features top government officials, business leaders and investors from Cyprus and the US. Also, addressing the forum will be the Cypriot minsters finance, transport and energy and Jonathan Cohen Deputy Assistant Secretary European and Eurasian Affairs – US Department of State.

The Forum aims to raise awareness of Cyprus as an investment and business destination among the US investment, financial and business communities. It will showcase the increasing importance of Cyprus as a regional maritime, logistics, energy and operational hub and highlight investment and business opportunities in these areas as well as in financial services, IT and tourism.

Good news but realism should prevail - IN CYPRUS / CYPRUS WEEKLY

March 12, 2017
Charles Ellinas

The long-awaited confirmation of Cyprus’ third licensing round awards was made on Tuesday, March 7. As expected, these awards were as follows:

Block 6: ENI-Total consortium
Block 8: ENI
Block 10: ExxonMobil and Qatar Petroleum

The signature bonus to be paid to the government totals €103.5 million.
This was good news and a successful conclusion to a bidding round that saw three of the world’s oil and gas majors committing to Cyprus’ Exclusive Economic Zone (EEZ). The signature of the Production Sharing Agreements is expected by the end of March.

The other equally important news was confirmation that ENI and Total have agreed to extend their cooperation in Block 11 on a 50:50 basis, with Total as the operator. The farm-in deal has been approved by Cyprus’ Council of Ministers.

In the following I analyse these developments and their implications for Cyprus and the region.

Libya's deepening split finds battleground at oil terminals - EGYPT INDEPENDENT

Sun, 12/03/2017 - 10:27

Hundreds if not thousands of armed men are converging on Libya's main oil shipping terminals, which the rival powers in the country's east and west are fighting to control in a battle being watched by global oil markets.

The struggle for the Ras Lanuf refinery and nearby Sidr depot threatens to spiral into an all-out conflict between east and west. Already, it has seen the bloodiest fighting yet between the two camps: around 40 troops from the east were killed over four days as militias backed by western factions stormed the area last Friday, losing a handful of casualties.

Now forces from the east loyal to military strongman Khalifa Hafter are massing nearby, threatening a new assault to wrest back the facilities, which are nominally in the hands of the Tripoli government.

No Cyprus solution: no UN and no gas? - IN CYPRUS / CYPRUS WEEKLY

March 12, 2017
Fiona Mullen

Efforts to solve the Cyprus problem are dying fast. In an interview with Kibris on Monday, the UN Special Advisor, Espen Barth Eide said something that should wake everyone up on this island.

Translated back from the Turkish, he said: “If the process fails, I have the feeling that it will not be possible to expect the UN to come again after a couple of years when things improve and give it another try. I don’t know. This is why I am worried. I would be more worried if I were living here. I hope I am wrong but I have to say that I am worried it will not be a smooth exit.”

This is diplo-speak for: “If you don’t come back to the table, don’t expect the UN to try again”.